Motorola 2004 Annual Report Download - page 113

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105
MOTOROLA INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS(Dollars in millions, except as noted)
Non U.S. Plans
Years Ended December 31
2004
2003 2002
Service cost $51 $52 $52
Interest cost 66 49 44
Expected return on plan assets (47) (37) (39)
Amortization of:
Unrecognized net loss 24 18 9
Unrecognized prior service cost 111
Settlement/curtailment loss 2ÌÌ
Net periodic pension cost $97 $83 $67
The status of the Company's plans is as follows:
2004
2003
OÇcers
OÇcers
and Non
and Non
Regular MSPP U.S.
Regular MSPP U.S.
Change in beneÑt obligation:
BeneÑt obligation at January 1 $ 4,174 $208 $1,225 $ 3,725 $ 232 $ 873
Service cost 168 14 51 173 16 52
Interest cost 271 12 66 252 13 49
Plan amendments ÌÌ Ì 11 1 (1)
Discontinued operations Ì Ì (80) ÌÌ Ì
Settlement/curtailment (115) (8) (27) Ì1Ì
Actuarial (gain) loss 403 13 (36) 234 42 153
Foreign exchange valuation adjustment Ì Ì 125 Ì Ì 118
Employee contributions ÌÌ 14 ÌÌ 12
Tax payments Ì (20) Ì Ì (21) Ì
BeneÑt payments (160) (34) (28) (221) (76) (31)
BeneÑt obligation at December 31 4,741 185 1,310 4,174 208 1,225
Change in plan assets:
Fair value at January 1 2,798 96 668 2,303 135 523
Return on plan assets 265 3 60 517 10 70
Company contributions 580 25 47 200 29 46
Employee contributions ÌÌ 14 ÌÌ 12
Discontinued operations Ì Ì (59) ÌÌ Ì
Foreign exchange valuation adjustment ÌÌ 61 ÌÌ 44
Tax payments from plan assets Ì (4) Ì Ì (3) Ì
BeneÑt payments from plan assets (160) (33) (19) (221) (75) (27)
Fair value at December 31 3,483 87 772 2,799 96 668
Funded status of the plan (1,258) (98) (538) (1,375) (112) (557)
Unrecognized net loss 1,561 103 354 1,284 118 427
Unrecognized prior service cost (40) 1 4 (59) 2 5
Prepaid (accrued) pension cost $ 263 $ 6 $ (180) $ (150) $ 8 $ (125)
Components of prepaid (accrued) pension cost:
Intangible asset $Ì$4$5$Ì$6$Ì
Prepaid beneÑt cost ÌÌ 20 ÌÌ 46
Accrued beneÑt liability (924) (72) (485) (977) (94) (475)
Deferred income taxes 452 28 1 317 37 1
Non-owner changes to equity 735 46 279 510 59 303
$ 263 $ 6 $ (180) $ (150) $ 8 $ (125)
The Company uses a Ñve year, market-related asset value method of amortizing asset-related gains and losses.
Prior service costs are being amortized over periods ranging from 9 to 15 years. The beneÑt obligation and related